The Duration of the Regulation Regarding the Deduction of R&D and Innovation or Design Expenditures from Corporate Earnings on an Incremental Basis Has Been Extended

The Period of the Regulation Regarding the Incremental Deduction of R&D and Innovation or Design Expenditures from Corporate Income Has Been Extended and the Specified Indicators Have Been Expanded

With Presidential Decree No. 6652, in R&D or design centers established under Law No. 5746 on the SUPPORT OF RESEARCH, DEVELOPMENT AND DESIGN ACTIVITIES, which achieve at least a twenty percent increase compared to the previous year in any of the indicators specified below, 50% of the increase in R&D and innovation or design expenditures made in that year compared to the previous year may be subject to R&D and design deduction in determining corporate income pursuant to Article 10 of the Corporate Tax Law No. 5520 until 31/12/2028.

a) The share of R&D or design expenditure in total turnover.

b) The number of registered national or international patents.

c) The number of internationally supported projects.

ç) The ratio of the number of researchers with postgraduate degrees to the total number of R&D personnel in R&D centers.

d) The ratio of the number of designers with postgraduate degrees to the total number of design personnel in design centers.

e) The ratio of the total number of researchers to the total number of R&D personnel in R&D centers.

f) The ratio of the total number of designers to the total number of design personnel in design centers.

g) The ratio of turnover from new products resulting from R&D and design activities to total turnover.

With Decree No. 6652, the indicators for benefiting from the regulation in Council of Ministers Decree No. 2016/9092 have been expanded to include "the ratio of the number of designers with postgraduate degrees to the total number of design personnel in design centers," "the ratio of the total number of designers to the total number of design personnel in design centers," and also "the ratio of turnover from new products resulting from design activities to total turnover."